RBI/2008-2009/ 203
Ref: DBOD.No.Ret.BC. 52/12.01.001/2008-09
October 6, 2008
All Scheduled Commercial Banks
(excluding Regional Rural Banks)
Dear Sir,
Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of CRR
Please refer to our Circular DBOD .No. Ret. BC.25 /12.01.001/ 2008-09 dated
July 30, 2008 on the captioned subject. On a review of the current liquidity
situation in the context of global and domestic developments, and as set out in
the RBI Press Release 2008-2009/447 of date, it has been decided to reduce the
Cash Reserve Ratio (CRR) for Scheduled Commercial Banks by 50 basis points from
9.00 per cent to 8.50 per cent of their net demand and time liabilities (NDTL)
with effect from the fortnight beginning October 11, 2008. This measure is ad
hoc, temporary in nature and will be reviewed on a continuous basis in the light
of the evolving liquidity conditions.
2. A copy of the relative
notification DBOD. No. Ret.
BC.51/12.01.001/2008-2009 dated October 6, 2008 is enclosed.
3. Please acknowledge receipt.
Yours faithfully
(P.K.Mahapatra)
General Manager
DBOD.No.Ret.BC. 51/12.01.001/2008-2009
October 6, 2008
NOTIFICATION
In exercise of the powers conferred under the sub-section (1) of Section 42
of the Reserve Bank of India Act, 1934 and in partial modification of its
notification DBOD.No.Ret.BC.24/12.01.001/2008-09 dated July 30, 2008, the
Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR)
required to be maintained by every Scheduled Commercial Bank shall be reduced by
50 basis points to 8.50 per cent of its net demand and time liabilities from the
fortnight beginning from October 11, 2008.
(H. R. Khan)
Executive Director